> ## Documentation Index
> Fetch the complete documentation index at: https://developer.tazapay.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Funding a Payout After Creation

> You can create a payout with insufficient balance and fund it later

Tazapay allows you to create a payout and fund it later. This is useful when you need to initiate payouts before funds are available in your account.

## How It Works

```mermaid theme={null}
flowchart TD
    A[Payout Created] --> B{Contains FX?}
    
    B -->|No| C[requires_funding]
    B -->|Yes| D{Custom config?}
    
    C --> E[Waits 7 days]
    D -->|No| F[Fails immediately]
    D -->|Yes| G[requires_funding]
    
    G --> H[Waits configured duration]
    
    E --> I{Balance credited?}
    H --> I
    
    I -->|Yes| J{Auto-fund enabled?}
    I -->|No / Timeout| K[Payout Fails]
    
    J -->|Yes| L[Auto-funded via FIFO]
    J -->|No| M[Fund API selection]
    
    L --> N[Payout Processed]
    M --> N
```

## Default Behavior

| Payout Type | Default Behavior            | Waiting Period      |
| ----------- | --------------------------- | ------------------- |
| Without FX  | Moves to `requires_funding` | 7 days              |
| With FX     | Fails immediately           | None (configurable) |

<Info>
  Payouts without FX transactions automatically move to the `requires_funding` state and wait for 7 days before failing.
</Info>

<Warning>
  Payouts containing FX transactions will fail immediately by default. You must enable the funding window configuration to allow deferred funding for FX payouts.
</Warning>

## Funding Mechanisms

### Automatic Funding (Default)

When your balance receives a credit, payouts in the `requires_funding` state are automatically funded using a **FIFO (First In, First Out)** mechanism based on creation time.

<Tip>
  The FIFO mechanism ensures that your oldest pending payouts are funded first, maintaining fair processing order.
</Tip>

### Selective Funding via API

You can disable auto-funding and use the Fund API to selectively fund specific payouts. This gives you full control over which payouts get funded.

**Use cases for selective funding:**

* Your customers fund you after payout creation on your platform
* You need to prioritize certain payouts over others
* You want to match specific incoming funds to specific payouts

## Enabling FX Payout Funding Window

By default, payouts containing FX transactions fail immediately if there's insufficient balance. To enable a funding window for FX payouts:

<Steps>
  <Step title="Contact Support">
    Reach out to [support@tazapay.com](mailto:support@tazapay.com) or your account manager.
  </Step>

  <Step title="Request Configuration">
    Specify the time duration you need for the funding window.
  </Step>

  <Step title="Confirmation">
    Tazapay will configure the custom duration for your account.
  </Step>
</Steps>

## Configuration Options

| Option               | Description                          | How to Enable   |
| -------------------- | ------------------------------------ | --------------- |
| FX funding window    | Allow FX payouts to wait for funding | Contact support |
| Disable auto-funding | Use Fund API for selective funding   | Contact support |

<Note>
  To disable automatic FIFO funding and use selective funding via the Fund API, contact [support@tazapay.com](mailto:support@tazapay.com) or your account manager.
</Note>

## Relevant Link

* [Fund Payout API](/api-reference/tazapay-api/fund-payout)